Ch. 311                                    LAWS OF MARYLAND

a grant or loan pursuant to this [section] SUBTITLE or any action
of the Department affecting a grant or loan already made, is
guilty of a misdemeanor and upon conviction shall be fined not
more than $5,000 or imprisoned for not more than two years, or
both. Every borrower who knowingly makes or causes to be made
such a false statement or report shall, at the option of the
Department, and without regard to the commencement of status of
criminal prosecution, be subject to immediate acceleration of the
loan for which he is liable. The criminal penalties and
acceleration provided by this section shall apply to any material
misstatement of fact, whether in the nature of an understatement
or overstatement of financial condition, of any other fact
material to the Department's actions.

[(m) (1)] 2-313. (A) The program shall operate as a
continuing, nonlapsing, special fund, that consists of moneys
appropriated by the State to the program.

[(2)] (B) The Department shall use the fund to make
loans and to pay expenses of the program including reserves for
anticipated future losses directly related to the program, as
provided in the annual budget of the State of other act
appropriating moneys.

[(3)] (C) The State Treasurer shall hold and the
State Comptroller shall account for the fund. The fund shall be
invested and reinvested in the same manner as other State funds.
Any investment earnings of the fund shall be paid into the
General Fund of the State.

[(4)] (D) The State may appropriate to the fund, in
the State budget, all of part of the moneys received as
repayments of principal or interest on all loans made by the
program at any time. The appropriation may be increased by
budget amendment. The amount of repayments so appropriated for
the purpose of making loans may not exceed $12,000,000 annually;
The State may not appropriate repayments of principal and
interest to the program to the extent that loans expected to be
made with the moneys appropriated would cause the total principal
amount of loans outstanding to exceed $100,000,000.

[(5)] (E) If there is no appropriation to the fund in
the State budget of part of all of the moneys received as
repayments Of principal or interest on the loans; the moneys not
appropriated shall be:

[(i)] (i) Credited to the Annuity Bond Fund to
be used to pay the principal of or interest on moneys borrowed by
the State and appropriated to the program; or

[(ii)] (2) Paid into the General Fund of the
State, to reimburse the State for administrative and other costs
of the program previously paid from the fund.

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